Updated: Feb 27, 2020
Corporate social responsibility (CSR) is generally a company’s commitment to conducting its business in a way that is as ethical as possible. A CSR strategy will acknowledge a company’s social, economic, and environmental impact, and outline the ways in which it is seeking to lessen, or compensate for, this impact.
An effective CSR strategy should filter through all aspects of the business and can involve a wide range of initiatives. This will often include activities such as waste reduction, responsible sourcing, working in partnership with local communities and socially responsible investment.
Why is CSR important?
CSR shouldn’t be seen as a box to tick, or an unnecessary drain on resources. An integrated approach to sustainability can help a business to stay innovative and competitive, while also having a positive impact on its relationships with different stakeholder groups.
With the world becoming more socially conscious than ever before, people are starting to pay more attention to the ethicality of the business practices of the organisations that they interact with in all aspects of their lives.
Being well-known for positive CSR policies can therefore be a great way for businesses to attract top talent, win new business, increase customer retention, improve relationships with suppliers, and build a positive brand image.